Audit Report
Audit Report No.: XH-2013-410013
To all shareholders of Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd.:
We have audited the financial statements of Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. (hereinafter referred to as "the Company"), which include the balance sheet and consolidated balance sheet as of December 31, 2012, the income statement and consolidated income statement for the year 2012, the cash flow statement and consolidated cash flow statement for the year 2012, the statement of changes in equity and consolidated statement of changes in equity for the year 2012, and the notes to the financial statements.
1. Management's Responsibility for the Financial Statements
The preparation and fair presentation of the financial statements are the responsibilities of the Company's management. This responsibility includes: (1) preparing the financial statements in accordance with the provisions of the Accounting Standards for Business Enterprises and ensuring that they provide a fair representation; (2) designing, implementing, and maintaining necessary internal controls to ensure that the financial statements are free from material misstatement due to fraud or error.
2. Auditor's Responsibility
Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with the auditing standards for certified public accountants in China. These standards require that we comply with the Code of Ethics for Certified Public Accountants in China and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls. The audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
3. Audit Opinion
In our opinion, the financial statements of the Company have been prepared in all material respects in accordance with the Accounting Standards for Business Enterprises and fairly present the financial position of the Company as of December 31, 2012, as well as its operating results and cash flows for the year 2012.
Li Xin Certified Public Accountants (Special General Partnership)
Certified Public Accountant: Zhang Ning
Certified Public Accountant: Zhang Xi
Shanghai, China
February 27, 2013
Financial Statements
Financial Statements Notes
1. Basic Information of the Company
Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. (hereinafter referred to as "the Company") was established in 1992 with the approval of the Guangzhou Economic System Reform Committee. It was reorganized into a joint-stock company based on five pharmaceutical factories under the original Guangzhou Baiyunshan Group. The Company's parent company is Guangzhou Pharmaceutical Group Co., Ltd. (hereinafter referred to as "Guangyao Group"), and the actual controller is the Guangzhou State-owned Assets Supervision and Administration Commission. The Company's business license registration number is 440101000121121. The industry is pharmaceutical manufacturing. The Company was approved by the China Securities Regulatory Commission (CSRC) and the Shenzhen Stock Exchange to issue shares to the public and is listed on the Shenzhen Stock Exchange with stock code 000522.